LandCorp report shows $9.6 million profit

LandCorp made a profit of $9.6 million in 1991-92, the final full year of its operation as a division of the WA Development Corporation.

The result was announced in LandCorp's 'Performance Profile 1992' released today by Lands Minister David Smith.

Under a recent Act of the WA Parliament, LandCorp merged its operations with the Joondalup Development Corporation and the Industrial Lands Development Authority to become the Western Australian Land Authority.The new agency became effective from September 1, 1992.

"In the year ended 30 June 1992, LandCorp sold 878 blocks of land for $42.5 million, compared with 560 lots worth $26.7 million in the previous 12 months," Mr Smith said.

"This was a strong performance in a depressed market which followed from LandCorp's policy of producing good, affordable residential land in a variety of locations.

"LandCorp, in fact, took up the void left by some private developers who were reluctant to finance new subdivisions in the current economic environment."

Mr Smith said LandCorp had developed new land for the market at a rate that was sufficient to meet demand and avoid shortages which would have led to higher prices.

At the same time, LandCorp had ensured that it did not contribute to an over-supply of land that could jeopardise the operations of the private sector.

"LandCorp's 1991-92 activities have injected more than $140 million into the WA economy," Mr Smith said.

"This figure is based on the average cost of site development per block sold and the price of the average house built on LandCorp land, using the industry-accepted 2.45 multiplier effect."

Nearly 70 per cent of LandCorp's sales were in the first home buyer category.

Increased sales in the $60,000-plus bracket resulted from innovative in-fill and small lot developments in suburbs such as Bull Creek, Carine, North Fremantle and Mt Claremont (St Johns Wood and Westminster Gardens estates).

Mr Smith said the extent of LandCorp's land holdings throughout the metropolitan region would continue to have a significant influence over the supply and price of residential land in the future.